Knight-Swift Transportation Holdings (NYSE: SWFT) and Union Pacific Corporation (NYSE:UNP) are both mid-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
This is a summary of recent ratings and recommmendations for Knight-Swift Transportation Holdings and Union Pacific Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Knight-Swift Transportation Holdings||0||5||10||0||2.67|
|Union Pacific Corporation||1||13||5||0||2.21|
Knight-Swift Transportation Holdings presently has a consensus price target of $28.33, indicating a potential downside of 3.92%. Union Pacific Corporation has a consensus price target of $113.65, indicating a potential upside of 0.58%. Given Union Pacific Corporation’s higher possible upside, analysts clearly believe Union Pacific Corporation is more favorable than Knight-Swift Transportation Holdings.
Institutional and Insider Ownership
74.9% of Knight-Swift Transportation Holdings shares are owned by institutional investors. Comparatively, 78.3% of Union Pacific Corporation shares are owned by institutional investors. 44.9% of Knight-Swift Transportation Holdings shares are owned by company insiders. Comparatively, 0.2% of Union Pacific Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Knight-Swift Transportation Holdings has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500. Comparatively, Union Pacific Corporation has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
This table compares Knight-Swift Transportation Holdings and Union Pacific Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Knight-Swift Transportation Holdings||2.65%||15.10%||4.04%|
|Union Pacific Corporation||21.79%||22.70%||8.05%|
Valuation and Earnings
This table compares Knight-Swift Transportation Holdings and Union Pacific Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Knight-Swift Transportation Holdings||$4.01 billion||0.98||$480.95 million||$0.90||32.77|
|Union Pacific Corporation||$20.72 billion||4.36||$9.80 billion||$5.52||20.47|
Union Pacific Corporation has higher revenue and earnings than Knight-Swift Transportation Holdings. Union Pacific Corporation is trading at a lower price-to-earnings ratio than Knight-Swift Transportation Holdings, indicating that it is currently the more affordable of the two stocks.
Union Pacific Corporation pays an annual dividend of $2.42 per share and has a dividend yield of 2.1%. Knight-Swift Transportation Holdings does not pay a dividend. Union Pacific Corporation pays out 43.8% of its earnings in the form of a dividend. Knight-Swift Transportation Holdings has increased its dividend for 7 consecutive years.
Union Pacific Corporation beats Knight-Swift Transportation Holdings on 10 of the 17 factors compared between the two stocks.
Knight-Swift Transportation Holdings Company Profile
Knight-Swift Transportation Holdings Inc., formerly Swift Transportation Company, provides truckload services in North America. The Company also provides rail intermodal and non-asset based freight brokerage and logistics management services. The Company provides its services across United States, Mexico and Canada using its dry van, refrigerated, flatbed and specialized trailers, and intermodal containers. As of September 10, 2017, the Company had a fleet of approximately 23,000 tractors and 77,000 trailers. It operates through its Knight Transportation, Swift Transportation, and Barr-Nunn branded subsidiaries.
Union Pacific Corporation Company Profile
Union Pacific Corporation is a railroad operating company in the United States. The Company operates through its principal operating company, Union Pacific Railroad Company (UPRR). Its business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. Its freight traffic consists of bulk, manifest, and premium business. Bulk traffic primarily consists of coal, grain, soda ash, ethanol, rock and crude oil shipped in unit trains-trains transporting a single commodity from one origin to one destination. Manifest traffic includes individual carload or less than train-load business involving commodities, such as lumber, paper, food and chemicals. The transportation of finished vehicles, auto parts, intermodal containers and truck trailers are included as part of its premium business. As of December 31, 2016, its network included 32,070 route miles, linking Pacific Coast and Gulf Coast ports with the Midwest and Eastern United States gateways.
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